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https://doi.org/10.1080/13504851.2017.1420868
Title: | The price effect of allowing non-pharmacy outlets to sell OTC drugs in Korea | Authors: | Chung, Hoe Sang MIN KIM |
Keywords: | Over-the-counter drugs non-pharmacy outlets deregulation difference-in-differences approach |
Issue Date: | 30-Dec-2017 | Publisher: | Routledge | Citation: | Chung, Hoe Sang, MIN KIM (2017-12-30). The price effect of allowing non-pharmacy outlets to sell OTC drugs in Korea. Applied Economics Letters 25 (18) : 1316-1318. ScholarBank@NUS Repository. https://doi.org/10.1080/13504851.2017.1420868 | Abstract: | By the amendment of the Pharmaceutical Affairs Act in 2012, non-pharmacy outlets (confined to 24-hour convenience stores) in Korea were permitted to sell 13 over-the-counter (OTC) drugs. This article empirically examines the effect of the regulatory reform on OTC drug prices. To do so, we use countylevel price data of 7 OTC drugs for the years of 2012 and 2013. Among them, 2 OTC drugs are available at non-pharmacy outlets due to the deregulation, and the remaining 5 are still only available at pharmacies. Employing a difference-in-differences estimation strategy, we find that after the regulatory reform, prices of the 2 OTC drugs increased by only 1.1% while those of the rest 5 increased by 6.5%. This result has implications for the government’s policy of designating non-pharmacy outlets that can sell OTC drugs from the viewpoint of consumer welfare. | Source Title: | Applied Economics Letters | URI: | https://scholarbank.nus.edu.sg/handle/10635/191509 | ISSN: | 1350-4851 1466-4291 |
DOI: | 10.1080/13504851.2017.1420868 |
Appears in Collections: | Staff Publications Elements |
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